Although the internet seems to be full of companies offering credit repair, the only real, tried and tested method I am aware of, is to establish a line of credit and maintain it faithfully over time. A typical approach is to apply for a bad credit credit card. Please don’t be confused between bad credit credit cards and prepaid credit cards – essentially prepaid credit cards are not really credit cards at all (there is no line of credit extended whatsoever). What we are talking about here are conventional credit cards specifically targeted at the “sub-prime” or “bad credit” consumers. As long as your credit rating is not particularly poor -less than perfect but not a financial disaster – there are companies out there who are willing to offer credit card accounts under these circumstances.
Please do not fall into the situation where you are so desperate for a line of credit you will accept any offer made to you! bad credit credit card offers are just like any other financial product or service. Take the time to compare rates, annual fees, penalties and interest rates just like any other credit agreement. If you fail to get acceptance from several different companies, it probably means your credit is worse than you originally thought and your best option is a prepaid credit/debit card.
Remember, even though these credit card offers are designed for people with poorer credit history than average, there are still certain requirements that must be fulfilled in order to be able to get approval for their card. At the end of the day even though they may be charging you extra for the privilege, they are still extending a line of credit and they will have to be satisfied that there is at least a reasonable chance of being repaid at some point! Firstly, many lenders will insist that the card applicant is in steady employment and receiving enough income to service existing living expenses, debts and bill repayments, with enough left over to service new line of credit.
For many the credit card application will be approved or declined on-line almost immediately. For others they fall into a “grey area” somewhere in between. for these applicants further checks and information may be required. Some companies may ask to see recent statements from checking or savings accounts or even proof of income or address history prior to approval. In addition card providers like to see stability in applicants. For example if you have had the same job/bank account/address for many years, they feel you are a better risk when assessing your application.